The technology heavyweight also said it expected sales for the third
quarter to be between $8.3 billion and $8.9 billion, lower than the
average analyst expectation of $9.03 billion, according to Reuters
Estimates.

"The revenue number is definitely a worry. The guidance -- with the
midpoint of the range of $8.6 billion -- I think is more negative than
what people were expecting," said Eric Ross, an analyst at ThinkEquity
Partners.

"I think they are going to do worse than this. There is a pricing
dynamic in the industry. AMD and Intel are in a price war. Intel is
probably going to underperform these numbers," Ross said.

Intel shares fell 3 percent to $17.97 in extended trading on the Inet
electronic brokerage. The stock has fallen about a third over the past
year as Intel has struggled to stem AMD's market gains, in part by
slashing prices on stocks of unsold chips.

Net profit for the second quarter was $885 million, or 15 cents per
share, compared to $2.04 billion, or 33 cents per share a year earlier.

Excluding stock-based compensation, Intel said it earned $1.12 billion,
or 19 cents per share, compared with $2.04 billion a year earlier.

On that basis, Intel had been expected to show a profit of $808
million, or 13 cents per share, according to the average analyst
forecast on Reuters Estimates.

Revenue in the second quarter was $8 billion, down from $9.23 billion a
year earlier and below the average forecast of $8.23 billion.

Despite recent woes, some analysts have said Intel may be poised for a
comeback as it rolls out new chips. It unveiled a new chip for server
computers that run business networks last month, and is taking the
wraps off a new desktop chip next week.

wrote:
> Yep, as I said before earnings announcements started, corporate
> America would "beat" the ridiculous, fixed "estimates" one after
> another....
>
> It's simply a miracle that multi billion dollar companies can post
> earnings right to the "estimates" penny....
>
> Revenues came in low, but of course, "investors" will send the stock
> up 10% because they "beat" yet another fixed "estimate".....
>
> Get ready for the rug to come out.....Again......